Which regulatory body oversees housing finance and enforces consumer protection laws?

The Consumer Financial Protection Bureau (CFPB) is the regulatory body responsible for overseeing housing finance and enforcing consumer protection laws. Established in response to the financial crisis of 2007-2008, the CFPB's mission is to ensure that consumer financial markets work efficiently and fairly. It accomplishes this by implementing and enforcing consumer protection laws designed to promote transparency, fair lending, and accountability among financial institutions.

One of the CFPB's key roles is to regulate and supervise financial institutions involved in housing finance, including mortgage lenders and brokers. This oversight helps protect consumers from abusive practices and ensures they receive the necessary information to make informed financial decisions regarding loans, including mortgages.

In contrast, while the Federal Reserve primarily focuses on monetary policy and regulating banks, the Department of Housing and Urban Development (HUD) is more focused on addressing housing issues, developing affordable housing, and implementing housing policy rather than directly enforcing consumer protection laws in the financial sector. The Federal Housing Administration (FHA), similarly, focuses on facilitating home ownership through mortgage insurance rather than enforcement of consumer protection laws. Thus, the CFPB is uniquely positioned to enforce these laws specifically within the context of housing finance.